Why Wall Street's AI Earnings Verdict Split Meta From Microsoft

**Chris Galipeau** (0:00)
But we're probably in the second ending of the game. The risk is that the whole thing is a bunch of BS and it falls apart. We do not believe that. We do not believe that. We think we're in the second ending of a not ending game, and this is real.

**Steven Ehrlich** (0:13)
Hi, everyone. Welcome to another episode of Bits and Bips, The Interview. My name is Steve Ehrlich. I'm the Head of Research at SharpLink and also your host. We've got a terrific show for you today. But as always, before we dive in, just a little bit of housekeeping. Nothing that you hear or see on this program is financial, or investment advice. For full disclosures, please see unchainedcrypto.com/bits and bips. And now let's briefly pause to hear from one of our sponsors.

**SPEAKER_3** (0:39)
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**Steven Ehrlich** (0:59)
All right. Welcome back. So got a terrific program for you today. A terrific guest. I have Chris Galipeau. He is the head market strategist at Franklin Temple, at the Franklin Templeton Institute. So welcome, Chris. Thank you, Steve. Thanks for having me. Yeah.
Got a lot to talk about today. I'm really excited to have you because you're, I think, I guess a self-described permable. There's a lot of FUD out there, fear, uncertainty, and doubt. I know you're not a crypto native, so maybe you're not up to date on all the lingo. But there's a lot of concern about all the uncertainty in the world, the Iran conflict, oil spiking, tariffs, worries about just like an unending spending spree of CapEx from the Mag7 and the big AI hyperscalers.
You've been pretty consistent throughout the year that fears of sort of the market topping out are overblown. And we're going to explore all of that today. But before we do, just really briefly, can you just for anyone in my audience that doesn't know who you are, what you explain what you do with the Franklin Templeton Institute?

**Chris Galipeau** (2:08)
Yeah, sure. Happy to. First of all, I am not a permeable. Just so we're clear on that, we can go into it later.
I do my best to be objective and unbiased, and having spent 25 years as an analyst in the PM, you're never perma anything, right? You're working with the data.
Franklin Templeton Institute is a part of Franklin Templeton, the asset manager. We run about $2 trillion. The Institute is really the thought leadership part of the organization. In my role as head strategist, I spend most of my time in the US working with our US clients. So it falls under my purview to build and outline our investment views and opinions. Usually for a 12-month window, I will comment on a weekly basis within that 12-month time frame, and just try and keep our clients updated on what we see, what we think, what's happening. Like this is a great week to be on because there's a lot going on. But you're right. I mean, for calendar 26, we've been bullish. We've been right. We could even take it back to longer than that. I think the themes or the pillars of that argument are still in place. But this will be a great conversation because we can cover everything you just mentioned.

**Steven Ehrlich** (3:26)
Yeah. So let's start with the news from yesterday. It was Kevin Warsh's second meeting chairing the Fed, and it seemed my impression from watching at least the beginning of his press conference after the rate announcement, which was basically to hold things steady for at least another two months. He seemed to be taking a bit of a valedictory victory lap, seeing how rates were going up on their own, the market was deciding, and the Fed didn't have to use forward guidance, didn't have to do all these things.
And then he started talking, and the market did not seem to like that. So I'd love to just first get your impressions on sort of how his remarks went and the quick drop and the rise, especially in the 30 year after that happened.

**Chris Galipeau** (4:16)
I think I agree, I generally agree with what you just said, where he spent a lot of time talking about, and this is the second time he's spoken, obviously, and he spent a lot of time talking about almost retooling the Fed's kit and pulling in different experts and building these task force, task forces, five of them, to try and evaluate how they assimilate data and make decisions based on the data, so I think that's going to take some time. But he did talk a lot about yesterday, the bond work, quote unquote, doing the work for them. So I've written about this extensively, probably within the past four weeks, every week where I was having a hard time understanding the movement in two-year yields, two-year no yields, which has a phenomenal long-term track record of predicting Fed policy. The bond market tells the Fed what to do, not the other way around. And so yesterday, to your point, he said, two-year yields have already moved up, they're 50, 60 basis points above the effective FF rate. That's the bond market telling the Fed, you need to raise rates, right? And that track record is almost perfect.